There’s no telling what will happen in the future, and that’s why you must plan accordingly for any circumstances. It is crucial to make sure that you plan your arrangements with the right mind to protect your estate and loved ones. That’s what a Power of Attorney document is made for. It is a legal document created for giving the authority to someone you fully trust to make decisions on your behalf if you become incapacitated.
Power of attorney documents is typically used if you have an illness that prevents you from making legal decisions. For example, you have a life-threatening disease that leaves you incapacitated or have a chronic illness that affects your mind, such as dementia. There are some factors you should consider while handling a Power of Attorney document.
Things to Consider with Power of Attorney Documents
Here are some things to consider with your power of attorney documents:
Cognitive ability
While considering the Power of Attorney factor, you need to be clear on what decisions will be made on your behalf. You will also have to think about whether you would want your POA to act upon these decisions. You’ll need to add these in when you are of stable mental capacity. Mental capacity, in simpler terms, means you can make or communicate your decisions properly.
How Should You Choose Your Attorney?
You must appoint someone you trust, as they could make significant decisions about your finances and healthcare. Your lawyer must always have your best interests at heart. Many people think of choosing a partner or spouse, a friend, another family member, etc. You may decide to assign more than one POA, but you will need to be clear about their position in agreeing, and whether they all need to approve or not.
General Power of Attorney
This part is helpful while you still have cognitive power. This type of adviser gives your chosen lawyer the authority to make conclusions and take strategies regarding your finances.
Lasting Power of Attorney
There are two types of Lasting Power of Attorney. The first is associated with equity and financial affairs and the second is with health and welfare. The first example of a lasting power of attorney is making decisions about your finances either with your permission or if you lose mental capacity. The second allows the advocate to do the same relating to your health and care necessities.
Besides the Power of Attorney document, you also have to make sure you create a will and trust and update them regularly. You should also periodically consider beneficiary selections on protection policies, retirement plans, and accounts.
If your situation is straightforward, you may choose a do-it-yourself (DIY) method to create a will, powers of attorney, or other legal documents. If you decide to do this, you will want to guarantee that the do-it-yourself document templates you use are state-specific and written/approved by lawyers. Nonetheless, many people feel safer enlisting the help of an estate planning adviser to help them agree on what documents they need and to walk them through to ensure effectiveness.
Contact a Reliable Probate Attorney for All Your Needs
If you have questions about your probate situation, contact a trusted Diamond Bar estate planning attorney to schedule a consultation.
